Company Study of China COSCO Group

COSCO Container Lines, the wholly-funded subsidiary of COSCO Group, is engaged in container shipping and related business. In the year of 2006, COSCO's fleet possessed 139 ships (including self-owned operation and rental operation) with the average age of 10.3 years and total handling capacity of 400 thousand TEUs. The scale of the fleet ranked first in China and fifth in the world.

COSCO's fleet calls at 120 plus ports in over 40 countries and regions, with the business covering 74 international shipping lines, 12 international branch lines, 17 China's costal shipping lines and 52 PRD and Yangtze River branch lines.

Container shipping is the core business as well as the main revenue source of the company. Container shipping business and related operations generated the income of RMB 27.986 billion, 32.506 billion and 34.909 billion respectively in 2004, 2005 and 2006, up by 16.2% in 2005 and 7.4% in 2006 year on year.

The dock business is operated by COSCO Pacific Limited, the subsidiary of COSCO Group. By 2006, it had invested and operated 24 dock projects as well as owned 115 berths globally; its annual handling capacity had reached 32.79 million TEUs.